Are German Companies Relocating Due to More Competitive Energy Prices Abroad?

According to a 2024 survey by the German Chamber of Commerce and Industry (DIHK), 37% of industrial companies are considering reducing or relocating production outside Germany due to energy costs. Among those with high electricity needs, the number rises to 45%. For large industrial companies (500+ employees), it's even higher at 51%.

Why Is Germany Focused on Lowering Industrial Energy Costs?

The German government isn’t just focused on the energy transition and climate goals. Its current priorities also include:

• Energy independence

• Reducing energy costs for industry

Germany currently imports about 70% of its energy, but that figure is expected to fall to 27% by 2050, supported by a €3.3 trillion investment in energy infrastructure.

This transition will bring:

• More renewable energy

• Greater pricing control

• More secure energy networks

Why Lower Prices Now?

According to the Bavarian Business Association (vbw), Germany’s industrial electricity prices were were around the EU average until 2022, but they’ve since become some of the highest. DW reports that industrial electricity costs 20 cents per kWh in Germany versus 8 cents in the U.S.. Berlin now aims to bring that down to 15 cents.

Source: Fraunhofer Institute

Is Lowering Prices a Good Idea?

Pros:

• Support for energy-intensive industries

• Prevention of industrial relocation

• Economic stability and job preservation

• Increased global competitiveness

Cons:

• High fiscal burden on taxpayers

• Potential market distortion and delay in energy efficiency

• Risk of favouring large firms over smaller businesses and households

In addition to price cuts, Germany is exploring measures like:

• Grid expansion

• Demand-side management

• Remote control

• Energy storage

Which really resonates with Aenergi’s mission to remotely control energy assets for industrial buildings, hotels and PV parks.

Instead of blanket subsidies, Aenergi by Apollo Green Solutions is a tool that provides smarter, AI-driven solutions:

• Optimizes energy use to reduce waste and cost

• Enables energy savings and trading

• Accelerates the green transition through better efficiency and CO₂ tracking

  
  

With success cases, from PV parks to hotels, achieving ROI in under 8 months — Aenergi proves that smart flexibility savings are possible even in sensitive, 24/7 industrial settings.

Our Take

Germany can achieve lower industrial energy costs and greater flexibility, not just through subsidies or infrastructure megaprojects, but also through intelligent, targeted tools that allow remote controlling and automations and support the industry while preserving resources and advancing the energy transition.

Apollo Green Solutions